Landscape of Green Finance in India

The report details the operational framework for mapping green finance in India, focusing exclusively on mitigation activities. It defines the scope of 'green finance' to include climate finance and environmental objectives like resource conservation, while explicitly excluding adaptation, biodiversity, and pollution abatement. The methodology describes the classification of sources (public, private, and international), the identification of financial instruments (grants, loans, and equity), and the sectoral coverage spanning power generation, energy efficiency, and sustainable transportation. It specifies the data sources used, including Union and State budgets, OECD databases, BNEF, and reports from Public Sector Undertakings (PSUs).

• The study adopts a specific taxonomy for green finance in India, distinguishing between climate finance (supporting mitigation and adaptation), green finance (including climate finance and other environmental objectives like resource conservation), and sustainable finance (a broader inclusive investment universe).
• The scope of the tracking exercise is limited to mitigation-related activities, specifically excluding adaptation finance, biodiversity, agriculture, forestry and other land use (AFOLU), and pollution abatement activities.
• Sectoral coverage for mitigation is divided into three primary categories: Power Generation (wind, solar, hydro, tidal, geothermal, and biomass), Energy Efficiency and Power Transmission (process efficiency, green built infrastructure, and smart grids), and Sustainable Transportation (low emission vehicles and charging infrastructure).
• The methodology tracks three main types of financial instruments: grants (non-repayable cash transfers), loans (split into low-cost/concessional and market rate), and equity (ownership interests). Risk management instruments and guarantees are excluded due to tracking difficulties.
• Public fund sources are categorized as domestic (funds moving out of the Indian exchequer), international public (bilateral and multilateral flows), and Public Sector Undertakings (PSUs), which are treated as sources of funds rather than intermediaries to prevent double counting.
• To estimate transaction values where project-wise data is unavailable, such as in BNEF databases, the study uses a proxy methodology based on capacity addition (MW) and capital cost norms per MW provided by the Central Electricity Regulation Commission (CERC) and State Electricity Regulatory Commissions (SERC).
• The analysis of green built infrastructure is based on 242 projects certified between 2016-18 by GRIHA, LEED, and IFC-EDGE, using an assumption that the rating/certification fee represents 1.09% of the additional cost incurred to make a building 'green'.

APA

Climate Policy Initiative (2020). Landscape of Green Finance in India. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/11/Methodology-and-Approach_-Landscape-of-Green-Finance-in-India.pdf

Chicago

Climate Policy Initiative. Landscape of Green Finance in India. 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/11/Methodology-and-Approach_-Landscape-of-Green-Finance-in-India.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Green Finance in India |date=October 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/11/Methodology-and-Approach_-Landscape-of-Green-Finance-in-India.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020landscape, author = {{Climate Policy Initiative}}, title = {{Landscape of Green Finance in India}}, institution = {Climate Policy Initiative}, year = {2020}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/11/Methodology-and-Approach_-Landscape-of-Green-Finance-in-India.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }